Complete the performance report. (For accounts with a zero balance, make sure to enter "0" in the appropriate cell. Label each variance as favourable (F) or unfavourable (U). If the variance is zero, do not select a label.)

Roland Company
Income Statement Performance Report
Year Ended July 31
				Flexible Budget for
	Actual Results at	Flexible Budget		Actual Number of	Sales Volume		Static (Master)
	Actual Prices	Variance		Output Units	Variance		Budget
Output units	43,000			43,000	4,000	F
Sales revenue	$223,000			$223,000	$26,000	F
Variable expenses	88,000			83,000	14,000	U
Fixed expenses	109,000			102,000	0
Total expenses	197,000			185,000	14,000	U
Operating income	$26,000			$38,000	$12,000	F

Identify the employee group that may deserve praise and the group that may be subject to criticism. Give your reasons.